TEB - Rebate or Yield Reduction Payment Due

If you identify a failure to pay rebate or a yield reduction payment, then the bonds are arbitrage bonds under IRC 148. However, it might be appropriate to resolve the noncompliance by securing delinquent or amended Form 8038-T. If so, solicit the returns, place the returns under examination through RCCMS and assert the appropriate penalties. See IRM 4.70.13.9.5.9, TEB Procedures For Secured Delinquent and Late Filed Returns and Forms, for instructions on processing these returns.